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Ram Energy to Increase Spending in 2010

Ram Energy Resources Inc. will increase spending 42 percent for 2010, the company said.Ram Energy will spend of $50 million compared to the revised $30 to $35 million budget for 2009.Ram also reported production this year is expected to meet or exceed previous guidance of 2.5 million barrels of oil equivalent. “In contrast to Ram’s 2009 capital budget aimed at maintaining production, the 2010 budget targets rekindling production growth and represents an increase of approximately 50 percent over that targeted for the 2009 year,” said Larry E. Lee, chairman and CEO. “The size and scope of our preliminary capital budget for 2010 is an expression of our aim to increase production over the near term from our existing inventory of drilling opportunities in established plays along with two new exploratory projects.”Also, the company announced preliminary capital expenditure plans and assumptions for the 2010 year and updates fourth quarter 2009 operating activity.Ram has allocated a substantial $22 million, or 44 percent of the total capital budget, to developing fields in South Texas. In South Texas, Ram has continued to expand field boundaries with new seismic and successful drilling results, primarily in the company’s LaCopita field in Starr County. Plans call for drilling a total of nine locations in south Texas during 2010. In total, the company has identified over 70 drilling locations in South Texas.In the Barnett Shale play of North Central Texas, Ram’s capital budget for 2010 focuses on resuming the exploitation and development projects largely set aside during the environment of low natural gas prices which prevailed during much of 2009.Ram has allocated $3 million, or 6 percent of the total budget, to drilling on its jointly held leases with Devon Energy. In addition Ram has an interest in 22 gross producing wells and an inventory of more than 60 seismically identified locations on its held by production Barnett Shale acreage.